If a Firm Decreases Its Operating Costs,all Else Constant,then

question 55

Multiple Choice

If a firm decreases its operating costs,all else constant,then:

• A) the profit margin increases while the equity multiplier decreases.
• B) the return on assets increases while the return on equity decreases.
• C) the total asset turnover rate decreases while the profit margin increases.
• D) both the profit margin and the equity multiplier increase.
• E) both the return on assets and the return on equity increasE.

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Definitions:

David Buss

An evolutionary psychologist known for his research on human sex differences in mate selection.

Natural Selection

A process in evolutionary biology where organisms better adapted to their environment tend to survive and produce more offspring.

Passing on Genes

The biological process through which an individual transmits genetic information to their offspring, contributing to the genetic makeup of successive generations.

Evolutionary Psychology

A theoretical approach in psychology that examines mental structure from a modern evolutionary perspective, focusing on how evolutionary principles such as natural selection have shaped the mind and behavior.